Order 2012

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

On the Second day of August , 201 2

Pacific For Less, Inc. Docket OST 2012

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Served August 2 , 201 2

Violations of 49 U.S.C. § 41712 an d

14 CFR 399 .84(a)

CONSENT ORDER

This consent order concerns Internet advertisements by Pacific For Less, Inc.

, ( Pacific ) that failed to comply with the Department’s full

- fare advertising rule, 14 CFR 399 .8 4 (a) , and

constitute an unfair and deceptive practice prohibited by 49 U.S.C. § 41712. It directs Pacific

to cease and desist from future violations of Part 399 and section 41712 and assesses Pacific a compromise civil penalty of $ 20 ,000.

Applicable Law

Pacific is a ticket agent 1 and is therefore subject to the advertising requirements of Part 399 of the Department’s rules and the prohibitions in 49 U.S.C. § 41712 against engaging in unfair and deceptive practices. To ensure that consumers are not deceived and are given accurate and complete fare information on which to base their airline travel purchase decisions, 14 CFR 399.84(a) requires that advertisements specifying airfares and tour package prices with an air component state the entir e price to be paid by the

consumer. Although charges included within the single total price listed, e.g., government taxes, may be described separately or through links or “pop ups” on websites

1 A “ticket agent” is “a person (except an air carrier, a foreign air carrier, or an employee of an air carrier or foreign air carrier) that as a principal or agent sells, offers for sale, negotiates for, or holds itself out as selling, providing, or arranging for air transportation.” 49 U.S.C. § 40102(a)(45).2

that display the total price, such descriptions may not be fa lse or misleading, may not be displayed as prominently as the total price, may not be presented in the same or larger size as the total price, and must provide cost information on a per

- passenger basis that accurately reflects the cost of the item covered by the charge. Violations of section

399.84 (a) also constitute violations of section 41712.

Facts and Conclusions

An investigation by the Office of Aviation Enforcement and Proceedings (Enforcement Office) revealed a lack of compliance by Pacific with the Department’s full

- fare advertising rule. A review of Pacific’s website showed that , for a period of time after January 2012, the company advertise d prices for tour packages with an air component

that d id not include the entire price to be paid b y the consumer and, therefore, fail ed to meet the requirements of 14 CFR 399.84(a). More specifically, the advertised prices of tour packages were followed by an asterisk that referred consumer s to a statement at the

bottom of the page that indicated that taxes and fees were additional . Such conduct also

constitutes an unfair and deceptive practice prohibited under 49 U.S.C. § 41712.

Mitigation

In mitigation, Pacific states that any violation s of the Department’s advertising regulations were inadvertent. Pacific asserts that it has always worked with each customer during the booking process to ensure that they fully understand the total cost of their vacation, includi ng any taxes and fees charged to the consumer, and that it has never

receiv ed any consumer complaints relating to its advertising. According to Pacific, u pon receipt of the Department's investigation letter, it took immediate action to comply with

the Department’s regulations and brought its website into full compliance in a very short period of time

.

Dec ision

The Enforcement Office has carefully considered the information pro vided by Pacific and

believe s that enforcement action is warranted. The Enforcement Office and Pacific have

reached a settlement of this matter in order to avoid litigation. Without admitting or denying the violations described above, Pacific consents to the issuance of this order to

cease and desist from similar violation s of 49 U.S.C. § 41712 and 14 CFR 399 .84 (a) and to the assessment of $ 20 ,000 in compromise of potential civil penalties otherwise due and payable pursuant to 49 U.S.C. § 46301.

This compromise assessment is appropriate considering the nature and extent of the violations described herein and serves the public interest. It represents a strong deterrent against future noncompliance with the Department’s airfare advertising regulations

.

This order is issued under the authority in 49 CFR 1.57a and 14 CFR 385.15.3

ACCORDINGLY,

1. Based on the above information, we approve this settlement and the provisions of this order as being in the public interest;

2. We find that Pacific For Less, Inc.

, violated 14 CFR 399.84 (a) by failing to advertise the entire price to be paid by consumer s for tour packages with an air

component ;

3. We find that by en gaging in the conduct and violations described in ordering paragraph s 2

, above

, Pacific For Less, Inc.

, engaged in an unfair and deceptive trade practice in violation of 49 U.S.C. § 41712;

4. We order Pacific For Less, Inc.

, and all other entities owned or controlled by, or under common ownership and control with Pacific For Less, Inc.

, their successors and assign ee s, to cease and desist from further similar violations of 49 U.S.C. § 41712 and 14 CF R 399.84 (a) . Failure to comply with this cease and desist provision shall subject Pacific For Less, Inc.

, and its successors and assign ee s to further enforcement action;

5. We assess Pacific For Less, Inc. , $20 ,000 in civil penalties in compromise of civil penalties that might otherwise be assessed for the violations found in ordering paragraphs 2 and 3 above. Of this total penalty amount, $ 1 0

, 0 00, shall be due and payable as follows: $2

, 5 00 shall be due and payable within 15 days of the date of

issuance of this order

, and 3 additional payments of $ 2

, 5 00 each shall be due and payable on December 1, 201 2

, April 1, 201 3 , and August 1, 2013. The remaining portion of the civil penalty amount, $10,000, shall become due and payable if,

before August 1 5 , 201 3

, Pacific For Less, Inc. , violates this order’s cease and desist provisions or fails to comply with this order’s payment provisions, in which

case Pacific For Less, Inc. , may become subject to additional enforcement action for any violation of the order; and

6. We order Pacific For Less, Inc. , to pay the penalty through Pay.gov to the account of the U.S. Treasury. Payment shall be made in accordance with the instructions contained in the Attachment to this order. Failure to pay the penalty as ordered shall subject Pacific For Less, Inc. , to t he assessment of interest, penalty, and collection charges under the Debt Collection Act and to further enforcement action for failing to comply with this order.4

This order will become a final order of the Department 10 days after its service

date unl ess a timely petition for review is filed or the Department takes review on

its own motion.

BY:

SAMUEL PODBERESKY

Assistant General Counsel for
Aviation Enforcement and Proceedings

(SEAL)

An electronic version of this document is available at

www.regulations.gov